KUALA LUMPUR (May 14): Signature Alliance Group Bhd, a subsidiary of kitchen and wardrobe maker Signature International Bhd (KL:SIGN), has launched its initial public offering (IPO) on the ACE Market, aiming to raise RM161.2 million.
Priced at 62 sen per share, the IPO includes 260 million new ordinary shares, representing about 26% of Signature Alliance Group's enlarged share capital. No existing shares will be sold.
The public issue consists of 50 million shares for the Malaysian public, 30 million shares for eligible individuals who contributed to the company and 20 million shares for a restricted offering to entitled shareholders of Signature International.
The IPO will see the private placement of 125 million new shares to approved Bumiputera investors and another 35 million shares to select investors.
Applications close on May 21 and the listing is set for June 5.
The IPO proceeds will be used to expand the Penang office and open a new branch in Johor (RM12 million), for working capital (RM20 million), to repay bank loans for machinery and equipment (RM4 million), and to cover listing expenses (RM7.1 million).
Currently, Signature International owns 50.7% of Signature Alliance Group, but this will decrease to 37.5% after the IPO. Chin Hin Group Bhd (KL:CHINHIN), which owns 71.72% of Signature International, indirectly controls Signature Alliance Group. The combined 49.3% stake held by Chang, northern region CEO Foo Khai Shin and central region CEO Ng Mun Moh will be reduced to 36.5% after the IPO.
Signature Alliance Group mainly offers interior fitting-out and building construction services. This includes project planning, custom carpentry and fixtures, and manufacturing wooden furniture.
M&A Securities and Affin Hwang will jointly underwrite the 100 million new shares that are made available to the Malaysian public, the pink form allocations and the entitled shareholders of Signature International.